BEIJING (Agencies): In a sharp escalation of trade tensions, China has announced a steep increase in tariffs on American goods, raising them from 34% to 84%, effective April 10. The move is a direct response to the 104% reciprocal tariffs imposed by U.S. President Donald Trump earlier this week, which took effect on Wednesday.
The Chinese Ministry of Finance issued a strong statement condemning the U.S. measures, calling them “unilateral and provocative,” and vowing to defend China’s economic interests. Beijing’s decision underscores its growing frustration with Washington over what it sees as repeated breaches of trade understandings and hostile actions toward Chinese companies.
The new tariffs are expected to impact a wide range of American exports, including agricultural products, technology goods, and automobiles. The timing and severity of the tariffs highlight Beijing’s intent to push back forcefully against what it views as unfair trade restrictions.
Markets worldwide reacted swiftly and negatively. U.S. stock futures plunged, with Dow E-minis down nearly 710 points, while S&P 500 and Nasdaq futures also saw sharp declines. Oil prices fell to their lowest levels since early 2021, reflecting growing investor fears of a broader economic downturn driven by the intensifying trade conflict.
Meanwhile, the European Union is reportedly preparing its own countermeasures, with a €21 billion tariff package expected to take effect on April 15. EU leaders are calling for a united front to confront the potential ripple effects of the U.S.-China trade war on the global economy.
Despite the global fallout, President Trump has doubled down on his stance, stating the tariffs are meant to “level the playing field” and protect American jobs. Analysts warn, however, that the retaliatory spiral could tip the world economy toward a recession if diplomacy does not prevail.
As global powers dig in, economists and trade experts are urging de-escalation and renewed dialogue to avoid long-term damage to international trade and stability.